Article 21. Management of conflicts of interest related to the activities of rating analysts of the Law of the Republic of Kazakhstan On Credit Rating Activities

     1. Rating analysts are prohibited from participating in rating actions with respect to the rating object in cases where they:

     1) during one calendar year prior to the date of the rating action, they had an employment or business relationship with the rated person;

     2) own, directly or indirectly, securities and (or) other financial instruments, other property of the rated entity or persons exercising control over it or exerting significant influence on such person.

     The restrictions specified in subparagraph 2) of part one of this paragraph do not apply to accumulative insurance instruments, deposits of second-tier banks and the possession of other assets that do not enable the analyst to influence the activities of financial institutions offering these financial instruments.

     2. Rating analysts are prohibited from participating in discussions on the terms of payment for the services of a credit rating agency with the rated person, persons exercising control over him or exerting significant influence on him, underwriters of the rated person, as well as other employees of the credit rating agency and other persons.

     3. The credit rating agency provides a rotation procedure (replacement of the leading rating analysts involved in the preparation of the rating and (or) the rating forecast for one rating object).

     4. The change of the leading rating analysts involved in the preparation of the rating is carried out no more than four years after the first participation in the preparation of the rating in relation to one rating object. Leading rating analysts who have stopped participating in rating actions related to a rating object due to rotation are not entitled to participate in rating actions related to this rating object for at least two years from the date of rotation.

     5. Rating analysts are prohibited from owning shares of a credit rating agency.

     6. Rating analysts are prohibited from accepting financial remuneration or gifts from the rated person, the underwriter of the rated person and any persons with whom the credit rating agency has a business relationship.

     If the credit rating agency receives information that the rating analyst has accepted financial remuneration or gifts from the persons specified in part one of this paragraph, the credit rating agency, within three business days of receiving the information, initiates a review of the rating analyst's actions that could affect the ratings or rating forecasts. If a credit rating agency finds grounds for revising a rating or a rating forecast, the credit rating agency must take appropriate actions with respect to the rating or rating forecast in accordance with the procedure provided for in the internal documents of the credit rating agency.

     7. A rating analyst may not hold positions in the management bodies of the rated entity or persons exercising control over it or exerting significant influence on it, as well as the underwriter of the rated entity, for six months from the date of the last rating action in relation to the rating object in which he participated as a leading rating analyst.

     8. If a rating analyst resigns and goes to work for the rated person in whose rating he participated, the credit rating agency carries out an audit of the results of the rating analyst's analysis for the two years preceding his dismissal. If, based on the results of such an audit, significant deviations from the applied procedures and methodologies are identified that distort the previously made rating decision, the credit rating agency is obliged to review the rating, indicating the reason for such revision.

     9. If, in the course of performing their duties, a rating analyst or other employee of a credit rating agency discovers that other employees of the credit rating agency violate the requirements and (or) restrictions established by the laws of the Republic of Kazakhstan, internal documents of the credit rating agency, including internal rules, regulations, code of conduct, this rating analyst or other employee must report this violation to the responsible employee of the internal control service. The internal procedures of a credit rating agency provide for the protection of a rating analyst and other employee from any possible consequences of such reports.

The Law of the Republic of Kazakhstan on Credit Rating Activities  

On credit rating activities, the Law of the Republic of Kazakhstan dated July 23, 2026 No. 351-VIII SAM.  

President    

Republic of Kazakhstan     

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